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      BOC branch designated as RMB clearing bank in Taiwan

      2012-12-12 08:27 Xinhua     Web Editor: qindexing comment

      Bank of China's Taipei branch has been designated as the clearing bank for renminbi (RMB) transactions in Taiwan, the mainland-based People's Bank of China announced here Tuesday.

      The decision was made after a relevant appraisal process and in accordance with a cross-Strait currency clearing memorandum, according to the People's Bank of China.

      The mainland and Taiwan signed a currency clearing memorandum on Aug. 31, paving the way for a cross-Strait currency clearing mechanism.

      Under the memorandum, the two sides will each designate a clearing bank to carry out currency settlements and liquidations for the other side. The clearing banks will be able to handle cash exchanges of currencies from the two sides.

      Taiwan's monetary authorities in September designated Bank of Taiwan's Shanghai branch as the clearing bank to handle New Taiwan dollar transactions on the mainland.

      The memorandum was hailed as "another important step for cross-Strait financial cooperation" by people from both sides of the Taiwan Strait.

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